Argon Credit has converted its chapter 11 bankruptcy filing to a chapter 7 filing; a judge has ordered Argon Credit to transfer all proceeds and portfolio payments to its largest creditor Fund Recovery Services; the approved claim in the case is $37.3 million and Fund Recovery Services is expected to be fully paid. Source
Small business lender Kabbage is planning for a new equity fundraising, targeting a few hundred million dollars; sources say the lender is considering potential acquisitions including a buyout of OnDeck; Kabbage has reported a number of recent successes including a partnership with Banco Santander, expansion to Ireland and the industry's largest asset-backed securitization of small business loans. Source
The SEC's Office of Investor Education and Advocacy has issued an alert to investors, warning them about potential scams with companies claiming to be involved with ICOs; according to the report, fraudsters may use new technology such as ICOs to defraud customers in various ways; discusses recent trading suspensions, pump-and-dump, market manipulations and tips for investors. Source
The NFIB Small Business Optimism Index decreased to 104.7 from 105.3 in March and fell below expectations of 104.8; small businesses were less optimistic about business growth as momentum from the Trump administration slowed; lower sales expectations and uncertainty were key factors for the March Small Business Optimism Index report which collected its data prior to the delayed Obamacare vote which many small business owners were watching closely. Source
Moody's has issued comments on the OCC's announcement to offer a fintech charter; says the fintech charter would help reduce legal risks from partner bank funding; focuses on the effects from the charter on partner bank funding relationships; says banks could stop relying on partner banks to fund loan originations. Source
CNBC talks with Eyal Lifshitz of Bluevine who says fallouts from public companies have affected valuation discussions noting that investors are more skeptical now after struggles from Lending Club and OnDeck; Lifshitz expects companies will drop out of the market and Schwark Satyavolu, general partner at Trinity Ventures, says the industry is likely to see more acquisitions and consolidation. Source
Avant and Marlette Funding are battling state law in Colorado; the state has a 12% rate cap for consumer loans and both lenders advertise loans that exceed that limit; both partner banks that work with the online lenders have filed lawsuits against Colorado claiming the interest rates they charge are acceptable by federal law because of the charters they hold from their state. Source
Elevate Credit reported its second quarter earnings results on Monday, July 31; revenue for the quarter was $150.5 million, increasing 18.7% from the comparable quarter; earnings per share were $0.08, increasing from a loss of -$0.59 in the second quarter of 2016; business highlights noted in the earnings release included over $200 million in total principal outstanding with more than 120,000 open accounts, the launch of Elevate Labs and the introduction of the RISE line of credit product in Kansas. Source
In the Consumer Financial Protection Bureau's complaint reports, the agency showed only seven US complaints pertaining to bitcoin in 2016; data mined by LendEDU reports four filed against CoinBase and three against Circle; nonprofit advocacy group Coin Center says 37 complaints were filed on digital currency from 2011 to 2015. Source
Online multi-lender, Bizfi, has announced a new partnership with Internex Capital; Bizfi will add Internex to its network of lenders on the platform; Internex will offer asset-based revolving lines of credit from $250,000 to $5 million for small to mid-sized businesses in manufacturing, wholesale, trucking, business and consulting services; through its online lending platform Bizfi originates loans and also matches borrowers with its network of over 45 lenders. Source